Under what circumstances are Best Western branded hotels NOT subject to the terms and conditions of the Agreements?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
Approved May 2015 – Best Western shall institute a marketing program that gives Best Western the authority to enter into brand-level agreements ("Agreements") with online travel agencies or distribution partners (collectively, "OTAs"), provided the following general terms and conditions are included in any such Agreement:
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- All Best Western branded hotels in North America (each a "Hotel"; collectively, "Hotels") shall be subject to the terms and conditions of the Agreements unless the Hotel's contracted commercial terms are more favorable to the Hotel, in which case the Hotel's more favorable contracted commercial terms and conditions shall apply.
Source: Item 23 — Receipts (FDD pages 108–413)
What This Means (2025 FDD)
According to Best Western's 2025 Franchise Disclosure Document, Best Western-branded hotels in North America are generally subject to the terms and conditions of agreements that Best Western enters into with online travel agencies or distribution partners. However, this is not always the case.
Specifically, a Best Western hotel is not subject to these agreements if the hotel's own contracted commercial terms are more favorable to the hotel. In such instances, the hotel's more favorable terms will take precedence over the terms outlined in Best Western's agreements with OTAs like Expedia, Booking.com, or HRS Group.
This provision allows individual Best Western hotels to maintain beneficial arrangements they have negotiated independently. It ensures that franchisees are not forced to accept less favorable terms dictated by Best Western's corporate agreements, which could arise if a hotel has pre-existing contracts or can negotiate better deals on its own. This flexibility can be a significant advantage for franchisees who are skilled at negotiating or have unique market conditions that allow them to secure better terms.